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Is it permissible to enter into a partnership by providing a motorcycle, insurance, and a sum of money to purchase goods in exchange for 15% of the profits, with the cost of motorcycle repairs and insurance for subsequent years being deducted from the shared profits, and is Zakat obligatory on the value of the motorcycle and the capital if it reaches the nisab?

1 min readAlso available in العربية

There is no legal impediment to participating in trade under the following conditions: that the capital paid be in cash, not goods; that the partner not be required to bear a portion of the loss unless it is due to his transgression or negligence; that the insurance on the motorcycle be cooperative and mutual; that you know the partner's capital before combining your own capital; that a percentage of the profit be stipulated (and not an absolute stipulation of payment); and if you will share your money and work with him, then it is a partnership of 'inan. As for zakat, it is obligatory on trade goods and their profits if they reach the nisab and a year has passed over them, but it is not obligatory on the machinery used in trade.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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